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Hilton Head Council backs Novant Health's $855M revenue bond package; town not financially liable, Novant to invest in local hospital
Summary
The council unanimously approved a resolution under IRC §147(f) allowing the National Finance Authority to issue up to $855 million in tax-exempt revenue bonds for Novant Health projects across the Carolinas; Novant and town attorneys said the town will bear no liability and about $15 million is expected for Hilton Head Medical Center improvements.
The Hilton Head Island Town Council voted 7-0 May 6 to approve a resolution under Section 147(f) of the Internal Revenue Code supporting the issuance of up to $855 million in tax-exempt revenue bonds by the National Finance Authority for projects benefiting Novant Health across North and South Carolina. The vote followed a brief public hearing with no registered public commenters on the item.
Town counsel and Novant representatives said the resolution is procedural and required to preserve federal tax-exempt status for interest on the bonds; it does not impose any financial obligation or liability on the town. Town attorney Cohen told the council earlier that both IRS and the applicable New Hampshire statute governing the National Finance Authority require a local public hearing and a resolution approving the financing.
Joel Taylor, Novant Health, told the council the consolidated financing will direct approximately $15 million toward capital improvements at the Hilton Head Medical Center, including new imaging equipment and smaller facility projects. "Locally, what you all can expect is approximately $15,000,000 will be dedicated to Hilton Head Medical Center over the next several years for capital improvement projects," Taylor said.
Councilmembers asked for clarification on the geographic scope of the financing; staff confirmed the $855 million package consolidates projects at multiple Novant sites across North Carolina and South Carolina and required review and approval by local governments in each jurisdiction where a financed project is located. Councilmember Brown praised the investment as beneficial to local health-care capacity and jobs.
The council adopted the resolution unanimously; staff noted the adoption is limited to approving the financing purpose and does not commit the town to any repayment or contingent liability.
